Stephen Palley Suggests That Kik Would Need An Upwards Of $10 million USD In Court Battle with SEC
It’s no news that the SEC sued Kik Interactive, Inc. in New York Federal Court on June 4 The SEC sued Kik for supposedly operating an unregistered securities sale when it introduced an original coin offering (ICO) for its kin token in 2017. Kik announced that they were planning to battle against the SEC lawsuit and since then, the firm has raised roughly $5 million in crypto to battle against SEC stating that tokens are currencies used in its implementation and regulated by an autonomous foundation and that the SEC engages in regulatory abuse of power that is detrimental to development and outside the limits of its statutory authority.
While speaking to CNBC’s Ran Neuner, popular lawyer and spokesperson in the crypto-space Stephen Palley spoke has expressed his opinions on the SEC’s lawsuit against Kik. Stephen Palley stated that the SEC had lodged the case against Kik in a Federal Court for an ‘ unregistered $100 million token offer in 2017 ‘ rather than securities fraud. He added:
“This is the first instance of the SEC actually going to a Federal Court and suing a token issuer for violating the registration provisions of the Securities Act of 1933.”
Stating further, Palley added that as seen on the “defend crypto” website, Kik had already spent $5 million before going to court and that if the case were to continue, it would take them a lot more than that. He said that:
“I don’t think that $5 million is enough… Defense lawyers for this sort of case can cause $1000 an hour sometimes more, depends on depositions, whether it goes to trial, how the appeal cost… it can easily cost $10 to $20 million. I don’t think $5 million will be enough if they intend to take this all the way through.”